ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

Senate: FIN DP 6-1-0-0 | 3rd Read 17-9-4-0

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal Note

SB 1069: personal property exemption; increase

Sponsor: Senator Mesnard, LD 13

Committee on Ways & Means

Overview

Increases the business personal property exemption to $500,000 of full cash value for each taxpayer effective January 1, 2026.

History

Currently personal property that is a class 2 property that is used for agricultural purposes and personal property that is a class 1 property that is used in a trade or business is exempt from taxation up to $207,366 of full cash value for each taxpayer (A.R.S. § 42-11127). The Department of Revenue annually adjusts the exemption amount for the following tax year (TY) to account for inflation and for TY 2025, the exemption is $269,905 (Ariz. Const. art. 9, § 2; A.R.S. § 42-15002)

Provisions

1.   Increases the maximum exemption from personal property taxation for personal property classified as class 2 property used for agricultural purposes or class one property used in a trade or business to $500,000 of full cash value for each taxpayer. (Sec. 1)

2.   Contains a delayed effective date. (Sec. 2)

3.   Makes technical changes. (Sec. 1)

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7.                     SB 1069

8.   Initials VP/DD    Page 0 Ways & Means

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